Mobile computing devices such as smartphones and tablet computers have become an integral part of many people's lives. Many people use these devices as an aid for researching, comparing and purchasing products online as well as in physical stores. In fact, some reports indicate that up to 84% of smartphone shoppers utilize their smartphones while in a physical store to, among other things, research product specifications, compare prices and read reviews. More specifically, smartphone internet usage in June 2013 totaled 44% of retail internet minutes, up from 17% in 2010; and tablet internet usage accounted for 11% of total internet minutes in retail sites over the same time period.
During the second quarter in 2013, mobile commerce dollars totaled $4.7 billion or 8.6% of total United States electronic commerce dollars that quarter. Additionally, between the second quarter of 2012 and the second quarter of 2013, mobile commerce grew 24%, compared to 16% percent growth in electronic commerce as a whole. This growth trend is likely to continue as more people adopt smartphones and tablet computers.
Companies have noticed the growth trend of mobile commerce and, in response, have invested in smartphone and tablet computer application development to create user experiences for shoppers both in-store and away from store. In the second quarter of 2013, an estimated 57% of smartphone users visited the same company's website or application while in the store, compared to 43% who consulted another company's website or application. The top reason shoppers consulted these websites and applications was to compare prices. Moreover, among the smartphone users who visited the same company's website or application, an estimated 59% wanted to see if there was an online discount available. Similarly, among those who checked a different company's website or application, an estimated 92% did so to see whether they could get a better price. In addition to price comparisons, many smartphone users use their devices while in the store to take a picture of a product, share the picture via multimedia messaging, email and/or social networks, and/or to text or call family or friends to discuss the product.
A typical big box store may contain tens of thousands of products. In order to locate an item, a retail customer needs to browse several aisles of a store, which may be the size of a few football fields. Even in a neighborhood store where the shoppers are likely familiar with the layout, locating a specific product can be a challenging task. The size of the stores also brings challenges for companies. For example, promotional items often go unnoticed by shoppers unless the promotional items are located in a special display, end cap or other prime location of which there is limited availability.